This really makes it so the best path is to buy a home, live in it, then convert it to a rental. That way you have the best interest rate possible.
6 Likes
It’s disgusting for the big institutions to buy 2000 single family houses in a single transaction. There are millions of individuals who were waiting to buy REOs, but Obama sold most of the foreclosed houses to big institutions.
I was waiting and waiting and all the shadow inventory secretly went to their friends
3 Likes
I remember in 2010-2012 all the bears were arguing shadow inventory would flood the market. Home prices would decline another 25% or more. The bears certainly got that one wrong.
1 Like
@marcus335, I certainly remember that. I even delayed my home buying until I was certain it’s bogus. 
. That’s why I am wary of all the negative talk.
1 Like
I got 30-year-fixed 4.375% for my rental.
Glad i got 30-year-fixed rate. 
3 Likes
You got this rate just a couple months ago? Mortgage rate is now lower, a new low in 4 months
It makes sense to not provide government guaranteed mortgages for a pool of single family houses. That would bring Wall Street to single family housing market and will be bad for homeowners and small landlord. I’m glad that Fannie and Freddie ended this experiment.
The National Association of Realtors on Tuesday issued a statement commending the FHFA’s decision. “By financing the purchase of thousands of single-family homes for institutional investors to use as rentals, Fannie Mae and Freddie Mac compounded on inventory shortages and affordability concerns, which are holding back prospective homebuyers across the country,” the industry group said. “NAR applauds today’s FHFA decision, and we look forward to continue working with Fannie Mae and Freddie Mac to help more Americans achieve homeownership going forward.”
Can we just call Freddie and Fannie failures? They haven’t increased home ownership except during the liar loan days that led to the great recession. We’ve spend billions upon billions on them, and they haven’t achieved their primary goal. Does any other developed country have Freddie/Fannie? We claim to be free market and support capitalism, but they go directly against that.
Once you have them, you will need them forever. Too big to fail. Nobody can afford to let them go
I locked the rate at the beginning of May.
It seems mortgage rate went down recently slightly.
They can be wound down. They’d just have to stop buying new mortgages. They could gradually reduce how many they buy each year and get to zero over 5-10 years. It’s not like they do loan services themselves. All they do is collect money from servicers and pay bondholders. They can ramp down employee headcount as their business shrinks.
I don’t see much issue with Fannie and Freddie. They are using USD’s reserve status to benefit Americans by selling MBS to foreign investors. I think it’s an enviable advantage other countries are dreaming about.
Is it a profitable trade to bail out Fannie and Freddie for the US treasury? I think we can focus our energy on better places
Are they benefiting Americans though? Are we paying lower mortgage rates than other countries? If we aren’t paying lower mortgage rates and home ownership rates aren’t higher, then they are nothing more than an expense to be eliminated.
Need to compare the spread between national mortgage rate and inflation. Considering higher inflation and higher growth rate in US, I think Americans enjoy a better mortgage rate from Fannie and Freddie.
Taxpayers don’t really pay much for Fannie and Freddie. Pension and over regulation is better issue to focus
No points?
No point. I got $6000 credit from lender.
2 Likes